OAuth Redirect URI Details

When creating an application within your Developer's Account or within an ArcGIS Online Organization their is an option to specify a redirect uri. Traditional web clients JavaScript, Flex and Silverlight Apps need to leverage this security option. Ideally the redirect URL should point to an HTML page that lives in the same directory as your application. Some developers want to know if they can use convention of 'localhost' in their URL. This is perfectly acceptable.